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ACT202 Management Accounting

Question

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Required:
a) Prepare Sales budget for 2021
b) Prepare production budget for 2021
c) Prepare the direct material usage & purchase budget
d) Prepare direct manufacturing labour budget
e) Prepare manufacturing overhead budget
f) What is the budgeted manufacturing overhead rate?
g) What is the budgeted manufacturing overhead cost per unit for 2021?
h) Calculate the unit cost of a snowboard in closing inventory on 31 December 2021
i) Prepare ending inventory budget for 2021.
j) Prepare cost of goods sold budget for 2021
k) Prepare budgeted income & expenditure statement for year ending 31 December 2021
l) Prepare the budgeted balance sheet for Alps Ltd as at 31 December 2021
Question Two
Romper Rugs is holding two-week carpet sale at Tommy’s Club, a local warehouse store. Romper Rugs plans to sell carpets for $500 each. The company will purchase the carpets from a local distributor for $350 each, with the privilege of returning any unsold units for a full refund. Tommy’s club has offered Romper Rugs two payment options for the use of space
Option 1: A fixed payment of $5 000 for the sale period
Option 2: 10% of total revenue earned during the sale period.
Assume Romper Rugs will incur no other costs.
Required:
a. Calculate the breakeven point in units for : (i) option 1 and (ii) option 2
b. At what level of revenues will Romper Rugs earn the same profit under either option?
(i) For what range of unit sales will the company prefer option 1?
(ii) For what range of unit sales will the company prefer option 2?
c. Calculate the degree of operating leverage at sales of 100 carpets for the two rental options
d. Explain and interpret your answer to requirement c

ACT202 Management Accounting

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RESEARCH ESSAY TOPIC “ … in accounting what is represented as the monetary equivalent of certain kinds of assets at the time of their purchase is quite commonly taken  as the monetary equivalent for some years later.  The only monetary magnitudes which are significant for acti ...

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2,000 words maximum (excluding table of content, references and the executive summary). In-text citations, the introduction, body and conclusion of the report are included in the word count. Students who exceed 2,000 words will be penalised 1 mark (of the available 20 marks for this task) per 100 wo ...

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Q

International issues in Management Accounting (20 marks). This question relates specifically to the subject’s 3rd and 5th learning outcomes. Resources to assist students to conduct research and answer this question will be provided in the subject Interact site at the start of the session. Howe ...

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Question: Part A. 1) There are many threats faced by the revenue cycle while undertaking the basic revenue cycle activates.  Describe any five threats in the revenue cycle and identify appropriate controls for each threat. 2) Organizations change their existing information syste ...

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